Peter BriegerNortel ASNTEL.TODON'T BUYAug 17, 2005
Shareholders lawsuits is a concern. Move into Korea is very constructive, but still has questions about the profitability of the venture, the market they want to go after and the speed in which they will attain it.
If you own the stock, you are playing that there is some value in the assets they own. The company is not a going concern. Have a huge deficit hole in their pension plan. Individual parts of the company may be better being sold off.
Has about $4 per share in cash. They are thinking of selling an asset that would raise about another $1 billion, which would add another $2 per share in cash. However, the overall quality of the balance sheet is as bad as he has ever seen it. Speculative.